Common Scams in the Crypto Industry

As with any industry, there are a number of scams and unfortunately no lack of individuals who want to take advantage of someone in some way. While each scam is different, ultimately, they do have a couple of things in common - a convincing story, and an even more convincing representative.

There are many common red flags to look for, and here are a few. If any of the instances below sound familiar to you, then you might want to reconsider reviewing your relationship with whichever service/ individual that you’re doing business with.

Basic tips and articles with further information:

  • Do not invest with unregulated and unregistered companies. Always make sure you fully understand your investment, have a clear exit strategy, and don't invest in an ICO if you are less experienced with Cryptocurrencies. Investment scams
  • Do not send money to or invest withsomeone you met on a social media ( Instagram, Facebook, Twitter, etc), dating platform, or messaging service (Whatsapp, Telegram, Google hangouts, etc). Romance scams. Social media scams
  • Understand the industry and how mining works before sending funds. Mining scams
  • Purchase products from a legitimate merchant and have checked their customer reviews. Merchant scams
  • Know that Coinmama does not have brokers, account managers, miners, sales representatives or agents, mentors, Blockchain experts and the like. Coinmama employee impersonators
  • Do not give anyone remote access to your device, even if they claim to work for a company that you're familiar with. Tech support scams
  • Do not send funds of any kind to your employer or make purchases on their behalf. Job scams

Keep in mind:

  • When placing your orders with us, you should only send coins to your own wallet- we here at Coinmama do not generate or provide wallets, and when you log in to your Coinmama account, what you see is your purchase history with us, not a balance
  • Know that Coinmama does not hold, store, or invest in funds of any nature for our users.
  • Created your wallet by yourself and that only you can access it. If a wallet address was given to you by another individual or company, then that is not your wallet. For more information on how wallets work, click here.
  • Scam and fraud tactics are ever evolving and not limited to the scenarios listed above but the signs are more or less the same.
If you believe that you may be the victim of a scam, or simply aren't sure, please contact our support team, we're here for you.


Was this article helpful?